The only way is down when it comes to Exeter lease terms. Exeter properties that have a residual term lower than eighty years will de-escalate in value even faster, and the cost of extending your lease will increase.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Retaining our service gives you enhanced control over the value of your Exeter leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted discussions with the landlord of her basement flat in Exeter, Lucy commenced the lease extension process as the eighty year threshold was swiftly nearing. The legal work completed in June 2006. The landlord’s charges were kept to an absolute minimum.
In 2009 we were e-mailed by Mrs Rhiannon Williams who, having completed a studio flat in Exeter in February 2007. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Similar residencies in Exeter with an extended lease were in the region of £174,200. The average amount of ground rent was £55 invoiced monthly. The lease came to a finish on 1 May 2077. Given that there were 51 years outstanding we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus costs.
In 2013 we were phoned by Mrs I Young who, having completed a basement flat in Exeter in April 2004. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Identical homes in Exeter with a long lease were in the region of £285,000. The average amount of ground rent was £45 billed per annum. The lease expired in 2097. Having 71 years unexpired we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.